Actual Business Plans

Actual Business Plans What you will find are the actual Business Plans used by CEOs and entrepreneurs. There are two full-length business plans for: PARTS I. Marrone Enterprises – a restaurant/pub in Worcester, MA. – Page 1 II. Venture Magazine – a small business magazine, which competed with Inc. magazine for a dozen years before it went out of business. – Page 31 III. Next, you will find a partial business plans of a small business portal, Mucho.com – Page 49 In the document “Sample Business Plans”, will find table of contents and business plans for: 1. 2. 3. 4. 5. 6. 7. 8. 9. Briox Technology – medical device/oxygen generator – Page 6 American Laser Inc. – an employee-owned manufacturer – Page 9 Perspective – a senior citizen magazine – Page 11 In-Line Technology – a semi-conductor manufacturer – Page 14 BLT – car wash/gas station – Page 17 Nebur Engineering – a new computer company – Page 19 Malibu Technology – a hardware manufacturer – Page 23 Apricor - commercial service provider – Page 25 Face Pilot – skin care products – Page 28 The above business plans are not offered as an example of good or bad business plans. Rather they are offered to give you a wide variety of types of actual plans to help you to synthesis ideas in developing your own business plan. The objective is to show diverse plans, each with a different emphasis, to allow you to develop your own unique approach to preparing and writing a business plan. 180 Varick Street • Penthouse • New York, NY 10014 • URL: www.ceoclubs.org (or .com) Tel: (212) 633-0060 • Fax: (212) 633-0063 • VM: (212) 978-8863 • Email: ceoclubs@180varickstreet.com Page 1 of 95 FINANCIAL PROPOSAL FOR MARRONE ENTERPRISES, INC. Statement of Purpose The goal of Marrone Enterprise, Inc. is to take advantage of the current trend of people eating out of the home by establishing a series of moderately priced Pub/Restaurants. In starting the first unit, Marrone Enterprises, Inc. is seeking a loan of $100,000 to be used toward the purchase of equipment and inventory, maintain sufficient cash reserves and provide adequate working capital to successfully develop a significant consumer following. This sum, together with the $40,000 equity investment of the principals, will be sufficient to finance transition through the growing phase so that the business can operate as an on-going, profitable enterprise. Table of Contents I. The Business a. General Description b. Market c. Location d. Competition e. Personnel f. Management g. Summary II. Financial Data a. Balance Sheet b. Breakdown Analysis c. Income Projections d. Working Capital Analysis III. Supporting Documents Page 2 of 95 General Description Marrone Enterprises, Inc. will be a Pub/Restaurant offering a unique warm atmosphere, a sandwich and seafood menu, large drinks (an effect created by special glassware), and quality service. Mr. Marrone's past experience has shown that sales will run approximately 55 percent to 45 percent liquor to food, making profits strong due to the large mark-up employed in liquor sales. Due to its location in a busy commercial/industrial area, just outside downtown Worcester, Marrone Enterprises, Inc. will derive most of its luncheon and cocktail hour (4 P.m.-6 P.M.) business from this business community. During the week nights (Monday through Thursday) from 7 P.M. until midnight, inexpensive food "specials" will be offered to create business volume. Marrone Enterprises, Inc. will be moderate in size seating approximately one-hundred fifty (150) people. Entertainment would consist of a high-quality system of background music. It would also feature a long bar seating twenty (20) people, as well as a long stand up rail area surrounding the bar. Food and drink would be served at both. The design would utilize the natural beauty of the building's bricks and beams with barnboard pine being used for partitions and walls. Hanging plants, mirrors and natural wood furniture would highlight the decor. Marrone Enterprises Inc. will begin business in October, 1979. Operational hours will be Monday through Saturday from 11:30 A.M. until midnight daily. Because of the unique, warm atmosphere, light, moderately priced menu, large drinks, polite efficient service, proven management, and accessible location, the business will draw not only from its immediate environment, but from further locales as well. The Market The market that Marrone Enterprises, Inc. will attract is the immediate business community and shoppers during the lunch and supper hours and the moviegoers, shoppers, and people out for a light meal or drink in the evenings. The number of people who work within walking distance of the restaurant is in excess of two thousand (2,000). This figure does not include the hundreds of salesmen, customers, and clients that visit these businesses daily. For the people not located in the immediate vicinity, there is ample parking (93 spaces) directly across from the restaurant as well as on-street parking. The only present alternative eating spot to those within walking distance is a local diner seating less than seventy-five (75) people. A ccording to the latest M.D.P.W. Traffic Survey, approximately 29,500 cars pass by the location daily. The evening market will come from the downtown shoppers and moviegoers and the people from the immediate towns. Marrone Enterprises, Inc. plans to attract this market by combining quality food, beverage and service, with moderate prices, easy accessibility and relaxed atmosphere. Volume is the key to the success of the operation. Marrone Enterprises, Inc. will offer a competitively priced bigger drink and during week nights will offer a very attractively priced food special. These specials will not be as profitable as other menu items but will stimulate business in normally slower periods creating the volume necessary to justify price. Page 3 of 95 The Location The proposed location for the first unit of Marrone Enterprises, Inc. is located at 106 Grove Street in Worcester, Massachusetts. The building is an old brick, four-story structure recently designated a historical monument by the Massachusetts Historical Society. Parker Apartment Complex, Inc. has recently purchased the building and is presently renovating for the purpose of retail or office space. The precise location of 106 Grove Street is on the second floor (street level) and is approximately 4,639 square feet. Marrone Enterprises is renting the property as is (lease copy in appendix) and will be responsible for renovation. A construction chart is available in appendix. Grove Street is a heavily traveled (29,500 cars daily) access route into downtown Worcester. The area consists almost exclusively of commercial and industrial concerns. There are over twothousand (2,000) employees within walking distance, as well as hundreds of visiting salesmen, customers, and clients. The most positive aspects of the Grove Street location are its accessibility and parking. Grove Street is easily accessible to all parts of the city as well as the suburbs. The map enclosed in the appendix illustrates the accessibility and gives the 1977 traffic counts. Parkin& a valuable commodity, is also readily available to the location (see parking map in appendix). During the day (until 5 P.M.), parking is provided (in the lease) directly across the street for 93 cars. Onstreet parking is also available. After 5 P.M., there are three (3) large parking lots (500 spots) also available. The Competition Marrone Enterprises, Inc. is unique in that it is not a full menu restaurant and not a lounge but a business that falls between the two. Due to this fact, there is little direct competition in the area. 1. "Maxwell Silverman's Toolhouse"-Iocated at Lincoln Square offers a sandwich menu at lunch and full dinners and dancing in the evening. Direct competition would be during lunch. Maxwell's is a fine operation doing very well. Its strength lies in its beautiful decor, good management, and lack of quality competition. The bar area is lacking in warmth and does not encourage people to come in and relax with drinks, an area in which Marrone Enterprises, Inc. will be strong. Because Maxwells is considered one of the few, if not only, nice spots in the downtown area, people would enjoy a moderately priced alternative, especially the businessmen's drinking crowd. 2. "Shannon's II"—located on Highland Street has recently been converted from Curley's. It offers a luncheon and dinner menu. Food is mediocre but is priced moderately. Management is not strong due mostly to lack of individual ownership. However, it does enjoy a very limited bar business. 3. "Nick's Grille"-located at Drury Square features a sandwich menu at lunch and dinners in the evening. Once a highly successful operation, it has tailed off noticeably in the last five years. Lack of interest by owner and increased competition may be the reasons. 4. "Pickwicks"-Iocated just off Main Street in Worcester is very similar to Marrone Enterprises, Inc. It is very successful to date but relies heavily on the theater crowd next door and caters to the young adults. The food is good, although the menu is a bit vegetarian and is weak in the production of beverages. Parking is available by garage only. Page 4 of 95 The Management Marrone Enterprises, Inc. recognizes the importance of a sound managerial team and therefore has organized the following structure. Operational Management: Joe Marrone and Ed MarroneOrganization and Advisory Management: Thomas Sullivan, Esq. and Timothy J. Harrington, C.P.A.Overall Consulting and Advisory Management: Board of Directors. Joe Marrone (personal resume in rear of this section) brings to Marrone Enterprises a lifetime of restaurant experience. Joe's father owned and operated the Wachusett Country Club located in West Boylston, Massachusetts. As Joe grew up, he performed every imaginable job necessary to the running of the club. After graduating from college, Joe became a full time assistant manager to his father, assisting him in the banquet, bar, and restaurant ends of the business. After the death of his father and subsequent sale of the business, Joe became associated with the Piccadilly Pub in Westboro, Massachusetts. Joe began as a bartender and within nine months was promoted to manager. It was at the Piccadilly where Joe became interested in the concept being undertaken by Marrone Enterprises. The Piccadilly operation consisted of a restored brick and beam structure featuring a good drink, weeknight food specials, and a sandwich menu. Joe's job as manager included; hiring and firing of all personnel, ordering of all food and liquor, inventory control and analysis and power of attorney. The Piccadilly operation seated one hundred ten (110) people and when Joe left to manage Holden Hills, average weekly sales were in excess of $10,000. At Holden Hills Country Club, Joe's responsibilities as general manager included direct control of golf operation, including pro-shop and greens departments; banquet operation, both food and liquor; restaurant operation, both food and liquor ordering; inventory and control and analysis; hiring and firing of all personnel; and all advertising and promotion. At the time Joe took over the job as manager, the downstairs restaurant at the Club had been closed down. Joe converted it from a dining operation to a pub/styled operation similar to Piccadilly's and by August, weekly sales reached a high of $7,400. This fact convinced Joe of the marketability of the pub concept. Ed Marrone, like Joe, grew up and participated in the operation of the Wachusett Country Club. Ed eventually struck out on his own and became a food salesman, selling directly to restaurants. Because of the scope of Joe's duties at Holden Hills, he recruited Ed to assume the job of manager of the pub operation at the club. Ed's duties as manager included inventory control and analysis, hiring and firing of personnel, and ordering of all food and beverage. Ed is currently manager of Shannon's I, a restaurant in Auburn, Massachusetts and is in charge of the entire operation. Ed's duties at Marrone Enterprises will be those of head bartender and assistant manager. His job will include assisting in inventory control and analysis, hiring and firing of personnel, and ordering food and liquor. Ed will be directly responsible to Joe with all other employees responsible to Joe and Ed. Salaries will consist of $400.00 per week for Joe and $225.00 for Ed, whose salary will be supplemented by bar-tending tips, which are expected to be between $120-$200 weekly. Assisting Joe and Ed in operational and organizational aspects at the business will be Timothy J. Harrington, C.P.A. and Thomas Sullivan, Esq. Mr. Harrington has been a practicing Certified Public Accountant for seven (7) years and has a number of area restaurants as accounts. Mr. Sullivan has been practicing law for six (6 years) and also runs an independent insurance company making him a valuable advisor. To assist Marrone Enterprises, Inc. in overall direction and expansion, a Board of Directors has been formed and a list of members and their background can be found in the appendix. Page 5 of 95 Personnel The personnel in a service-oriented business can be critical factors in the eventual success or failure of the business. Being acutely aware of this fact, Mr. Marrone has had many years of experience in the hiring of the type of personnel needed for Marrone Enterprises, Inc. As a matter of fact, many of his former employees at the Piccadilly and Holden Hills are anxious to assist him in this new venture giving him a nucleus of well-trained, experienced help. The majority of employees needed by Marrone Enterprises, Inc. will be part-time. Today's economy forces most people to work a second, part-time job and, therefore, there is an abundance of potential employees. Because of the part-time help and salaries, benefits and overtime can be kept to a bare minimum. Attached is an employee work schedule for the different phases of business. Summary Marrone Enterprises, Inc. is being formed for the purpose of establishing a series of restaurant/pubs featuring a unique warm atmosphere, a limited sandwich/seafood menu, large drinks, and quality service. The over-sized drinks, moderately priced food menu, and the weeknight food "specials" will result in a large volume of business. Experience has shown that sales will run approximately 55 percent liquor to 45 percent food, making the sales profitable due to the large mark-up employed in liquor sales. The restaurant will be open from 11:30 A.M. until 1:00 A.M. Monday through Saturday. Food will be served from 11:30 A.M. until midnight. Careful analysis of the potential market shows an unfilled demand for a restaurant/pub operation. There is a particularly sharp demand for a luncheon and after work cocktail hour. There are over two thousand (2,000) business people within walking distance and the only alternative to the proposed new restaurant/pub is a local diner. There is also a definite void in the area for a restaurant that shoppers and theatre goers can visit, before or after their excursions, for a light sandwich and drinks. This is a void that Marrone Enterprises, Inc. seeks to fill. Prices, $1.25-$4.95, will be moderate. Marrone Enterprises will attract business initially through an advertising and promotional campaign, reputation and the owner's following, and eventually word of mouth. The only direct competition will come from the following restaurants during lunches. The Chadwick Diner, located inside the surrounding industrial complex, caters more to the blue collar worker rather than the white collar that Marrone Enterprises will cater to. Maxwell's located in Lincoln Square, caters to business people but is too expensive for most to visit with any frequency. Nick's Grille located at Chadwick Square, a popular luncheon spot mainly because it is the only one in the area, is presently in the process of being sold. In the evenings, the only direct competition would be Pickwick's Pub located on Main Street in downtown Worcester. Pickwick's for-mat is quite similar and is presently undergoing expansion because demand is so great. Marrone Enterprises will secure its share of the market by offering an attractive, comfortable atmosphere, moderate more affordable prices, and greater dollar value. The location of Marrone Enterprises' first unit is one of its strongest assets. it is situated in an area with a heavy concentration of industry and commerce. One half mile to the left is downtown Worcester and soon to be new Civic Center. One half mile to the right is the Gold Star Boulevard Industrial Complex, as well as numerous commercial businesses and shopping areas. The D.P.W.'s most recent surveys indicate that approximately 29,500 cars pass directly in front of the location daily. The building, a designated historical monument, will not only help create the atmosphere for the restaurant with its natural brick and beams, but is Page 6 of 95 also being renovated for the purpose of being an office-retail complex. Parking is extremely ample with 93 spots plus onstreet parking available before 5 P.M. and over 500 spots available after 5 P.m. Management will also be a strong suit of Marrone Enterprises. Joe Marrone will be the manager and brings with him a lifetime of restaurant experience. Joe's family owned the Wachusett Country Club in West Boylston and Joe learned all facets of the business while growing up and eventually assisting in the running of the business. From there Joe helped start and managed for five (5) years the Piccadilly Pub in Westboro, an enormously successful restaurant/pub very similar to the intended operations of Marrone Enterprises. Joe then left the Piccadilly for the challenge of becoming general manager of the Holden Hills Country Club in Holden, Massachusetts. Joe was very successful in turning around what had been a negative business. One of the major factors in the turnaround of that business was the Pub Room Restaurant he created in the downstairs dining area of the club. Assisting Joe in the r unning of Marrone Enterprises will be his brother Ed Marrone. Ed, like Joe, grew up working at the Wachusett Country Club and after a stint as a food salesman managed the pub operations for Joe at Holden Hills. The management team of Marrone Enterprises will also consist of Timothy J. Harrington, C.P.A., an experienced restaurant accountant, and Thomas Sullivan, Esq. and insurance broker who will assist in legal and insurance matters. In order to give objective analysis and to assist with business and expansion planning, Marrone Enterprises has formed a Board of Directors, made up of local businessmen with varied but related business backgrounds. The majority of the personnel at Marrone Enterprises will be primarily part-time. The personnel needs will be dictated by business volume. Joe Marrone will be bringing in many of his former employees from the Piccadilly and Holden Hills, giving him a strong nucleus of well trained, dedicated employees. Page 7 of 95 Page 8 of 95 Page 9 of 95 Page 10 of 95 Page 11 of 95 Page 12 of 95 Page 13 of 95 Page 14 of 95 Page 15 of 95 . Page 16 of 95 Page 17 of 95 RESUME PERSONAL Name: Address: Joseph Marrone Mark Circle-Holden, Massachusetts 01520 Marital Status: Married Date of Birth: 29 October 1949 Place of Birth: Worcester, Massachusetts EDUCATI0N High School: College: St. John's High School 1963-1967 (graduated) Shrewsbury, Massachusetts Worcester Junior College 1967-1969 (A.M. degree) Worcester, Massachusetts Biscayne College 1969-1971 (B.A. degree) North Miami, Florida EXPERIENCE Company: Employed: Title: Duties: Company: Employed: Title: Duties:, Holden Hills Country Club-Holden, Massachusetts February 1978 to Present General Manager Responsible for entire operation, inclusive of golf course, greens, banquet and restaurant. Handle all advertising. Responsible for purchase of all food and beverage, inventory control and analyses. Piccadilly Pub-Westboro, Massachusetts July 1973-February 1978 Manager Shared responsibility of running the business with the proprietor. He worked days and I worked evenings. Responsible for food and beverage purchases. Responsible for the hiring of personnel and related problems, inventory control and was given power of attorney. Wachusett Country Club-West Boylston, Massachusetts September 1971-March 1972 Assistant Manager Acquired basic knowledge and skills of all facets of the restaurant business while assisting the manager, from bar tending to ordering as well as gaining experience in inventory control. Pate's Charcoal Pit-Chatham, Massaschusetts Summers-1970 and 1971 Waiter Waiting on tables, customer contact and maintaining relaxed pleasant atmosphere. Company: Employed: Title: Duties: Company: Employed: Title: Duties: Page 18 of 95 RESUME PERSONAL Name: Address: Edward J. Marrone 5 Oakwood Drive, Sterling Junction, Massachusetts 01565 Marital Status: Married Date of Birth: February 3, 1951 Place of Birth: Worcester, Massachusetts EDUCATION High School: EXPERIENCE Company: Employed: Title: Duties: Company: Employed: Title: Duties: Shannons I-Restaurant, Auburn, Massachusetts June 1, 1979 to present Manager Responsible for entire operation. Hiring of personnel and related problems. Responsible for food and bev erage purchases, inventory control and analysis. Holden Hills Country Club, Holden, Massachusetts April, 1978-March, 1979 Pub Manager Responsible for hiring personnel, purchasing of food and beverage, inventory control and analysis. West Boylston Junior-Senior High School West Boylston, Massachusetts (1965-1969-Graduated) Page 19 of 95 Page 20 of 95 BOARD OF DIRECTORS JOSEPH M. MARRONE Graduate of Biscayne College. Ten years experience in restaurant finance and management. President and Treasurer of Marrone Enterprises, Inc. ROBERT PIRANI Graduate Niagara University. B.S. Economics. Master Electrician. President and Treasurer of Joseph G. Pirani Inc., electrical contractors. Gross sales $243 million. JOHN K.MARRONE Senior Production Control Specialist for Norton Co. Member American Production and Inventory Control Society, Mass. Real Estate Broker. ROBERT J. MAHER Graduate Holy Cross College, B.S. Economics. Masters Degree in Hospital Administration from St. Louis University. Assistant Administrator for St. Vincent' s Hospital, Worchester, Mass. EDWARD H. GRANT Graduate Dartmouth, Tuck Graduate School of Business. President Edward H. Grant Co. Manufacturers Agents. Gross sales $8 million dollars. EDWARD J. MARRONE Secretary and working stockholder of Marrone Enterprises. Three years experience in restaurant sales and management. CAPITAL EXPENSES Air Condition/Heating Unit (bid enclosed) Plumbing (bid enclosed) Wiring-electrical (bid enclosed) Equipment- Kitchen and Bar (breakdown enclosed) Glassware, China, Utensils, etc. Table and Chairs Carpeting Outside Awning Interior Decor (window shutters, mirrors etc.) Office Furniture Light Fixtures Misc. Expenses and Cost Overruns Total: $14,000 12,500 4,500 37,764 5,000 10,000 10,000 1,200 5,000 3,000 2,000 -5,000 $110,964 Page 21 of 95 Page 22 of 95 Page 23 of 95 Page 24 of 95 1. It is agreed, however, that any regulations shall be reasonable and consistent with the customary use and operation of a restauranttavern operation. 2. The Lessor agrees to make such election and notification to the Lessee within ninety (90) days after the taking of said casualty loss. 3. In any case where there is no termination of the lease, the Lessor agrees to pronptly repair and restore the premises to their former condition. 4. In any case where there is no termination of the lease, the Lessor agrees to prcaptly repair and restore the premises to their former condition. 5. The Lessor agrees to make such election and notification to the Lessee within ninety (90) days after the taking of said casualty loss. AMENDMENT #1 FUEL ESCALATOR: The Lessee in addition to the rent hereinbefore mentioned hereby agrees to pay to the Lessor during the term of this Tea e and any extensions and renewals thereof; that portion of any increase in the cost of fuel for heating purposes. The Lessee pays only that portion of the increases which the leased premises bears to the total area in the building which the leased premises is a part. Cost of fuel increases will be based as of the cost of fuel as of the beginning date of this Lease; any increases after this date will be so prorated, and hereby agrees to pay such bills within thirty (30) days upon receipt of same. AMENDMENT #2 CPTICN YEARS: The Lessee in addition to the rent hereinbefore mentioned hereby agrees to pay to the Lessor during the first three (3) years of the option years of this Lease which ccmmences at the expiration date of the original tem hereof, upon the sane covenants and conditions as are contained in this Lease and in addition the Lessee agrees that a cost of living escalator will be applied as an increase in the monthly rental fee; that such fee will be reestablished by the percentage increase as announced by the National Cost of Living Council or its equal with base year being 1979. The Lessee further agrees that during the last two years of the five (5) year option period which commences eight (8) years after the expiration date of the original term hereof, upon the same covenants and conditions as are contained in this Lease excepting the rent reserved herein, which shall be subject to negotiation by the parties, such negotiations shall not be considered unreasonable and shall be relevant to the cost of operation and shall be considered a reasonable return for the space described within this Lease. If the aforementioned negotiation cannot be satisfactorily concluded ninety (90) days before the commencement of the next rental period, then they will submit to arbitration. The Lessor and Lessee agree at the commencement of the nineth (9th) year of the Lease that good faith negotiation will ccmmence with regard to a third five (5) year option period. AMENDMENT #3 Not to include initial rehabilitation and design for the purpose of this agreement. AMENDMENT #4 Page 25 of 95 The Lessor agrees to the following: a) That the "moat" located adjacent to the premises and between it and the sidewalk will either be covered or filled; b) That it will provide and construct any necessary ramps in order to conform with City and State regulations with respect to the handicapped; c) Provide evidence that the sprinkler system for the location is in good working order; d) Remove exterior paint and signs from the exterior wells in an area outlined by the side walls of Lessee portion of the premises and the height of the building within that area, and e) The Lessor agrees that all fixtures that are placed in the premises by the Lessee shall remain the property of the Lessee to the extent that any such fixtures way be removed and the premises remain in the same condition at the time of letting. Page 26 of 95 Page 27 of 95 Page 28 of 95 Page 29 of 95 Page 30 of 95